Ethical Banking

Ethical Banking

I had a growing concern for the role that my bank is playing in contributing to the destruction of our environment, global conflicts, and human and animal rights abuses – so I decided to research this. Fortunately there is a really helpful site, Ethical Consumer, which ranks UK banks according to a set of ethical criteria:

As a result of finding out just how awful NatWest Bank was, I switched my current and savings accounts to Triodos Bank. There are also other more ethical options for savings accounts such as Ecology Building Society, Charity Bank and Coventry Building Society.

Triodos are an international bank that lend money exclusively to the sustainable sector and are entirely transparent about where their funds go. So far it is the only bank I have found for both ethical current and savings account options. They do charge a £3 monthly fee for their current account, justified as follows:

“Rather than charging excessive penalties to a minority of customers to subsidise a ‘free’ account, we think a fairer approach is for all customers to pay a monthly fee (£3). This charge does not cover the full cost of running the account – it’s a statement that we need fairer and more transparent banking.”

If you are with any of the banks from the lower half of the above rank (i.e. Barclays, RBS, NatWest, HSBC, Santander, Halifax, Lloyds etc.), try and find out where exactly your money goes. Search on their website, the newspapers and/or contact their customer services. Find out which unethical institutions they are lending to or hold accounts for – are you happy supporting these activities inadvertently with your money? Do this also for your investments and pension, i.e. ask your pension provider how they incorporate sustainability issues into their investment strategy, demand transparency and action in line with the Paris Agreement.

Action: Take responsibility and switch to a more ethical solution if you are unhappy. There are plenty of options out there from ethical banks to certain building societies and credit unions. ALSO: Don’t forget to write to your former bank to explain why you are closing your account. This letter was sent to NatWest a couple of years ago: